EURUSD Continues on Range bound Movement

The pair continues to be in range ahead of the FOMC next week
Colin First

EURUSD continued to move on a range bound track during Thursday’ session, while early the pair saw slight bearish momentum post US market hours as US dollar was slightly influenced by positive Philadelphia Fed Manufacturing index ratings. The hourly trading charts show that EUR has been on a bearish momentum during today’s morning trading session. However the price range is still within expected short term price band which can hence be viewed as range bound pattern. While the short term market trend does seem in USD’s favor EURO still continues to remains strong and this is evident when we take a look at price range in last three months.

EURUSD Continues in Range

Most traders are cautiously awaiting FOMC minutes and in trading session to come, short term interest rates in US continue to rise ahead of US Fed Rate hike and this is expected to support the greenback. Also US Ten year bond yields are now up 5 bps to 2.92% and are expected to continue seeing further increase which is also expected to strongly support greenback to gain bull momentum across basket of major currencies.  EURO faces further pressure in short term as the Euro zone inflation remains well below central bank’s target of 2%.


Even if there is a breakout in this range bound momentum post a possible signal from ECB’s monetary policy next week, the price range will still be within longer price band that existed in the last three months (i.e., 1.209 & 1.259) as EURO continues to face strong support from positive economic environment as the 19 countries that share the euro are now enjoying the strongest growth in a decade after years of economic crisis that almost unraveled the euro zone. For EURO to see another bullish breakout or gain another boost in value against USD in days to come EU policymakers should soon work out reforms to resolve any possible weakness in economy while there is still momentum in current economic growth. In short term trading, support & resistance for EUR continue to be around range of 1.221 & 1.247 respectively.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.